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14/01/2025
🚨 Rising Insurance Premiums: A Challenge or an Opportunity for Indian Businesses?
As we step into 2025, the property and fire insurance landscape in India is undergoing a seismic shift. Premiums for Fire and Engineering Insurance are surging by 15% to 60%, driven by the withdrawal of discounts and reinsurer interventions. This major cost increase comes after years of unsustainable discounting and repeated market corrections that failed to stabilize pricing.
💡 Sajja Praveen Chowdary, Director at Policybazaar for Business, views this moment not just as a hurdle but as a strategic opportunity for businesses to rethink risk management. He emphasizes that reassessing protection strategies is critical for ensuring long-term security amid rising costs.
The factors behind this premium spike:
Withdrawal of discounts on rates by the Insurance Information Bureau of India (IIB) following reinsurer pressure.
Interventions by IRDAI and GIC of India, aiming to correct pricing with "burning cost" rates that proved insufficient.
A history of irrational discounting, leading to market instability and massive declines in premium collection.
With the Ministry of Finance sounding alarms and GIC introducing stricter pricing rules, businesses must now:
🔍 Reevaluate risk exposure and risk management frameworks
🤝 Strengthen partnerships with insurers
🔒 Prioritize comprehensive protection for assets and operations
This dynamic shift in the insurance market is a wake-up call for businesses to invest in sustainable risk solutions rather than viewing insurance as a mere compliance necessity.
What’s your approach to navigating these rising premiums? Share your thoughts below!
Read More- https://www.industrialautomationindia.in/articles/fire-engineering-insurance-premium-hike-opportunity-review-risk-management-policybazaar